How to Determine Your Domain’s Value
Besides gold, antiques, and other valuables, there is something else that could be equally or sometimes even more valuable – domain names! Domain names could be worth a lot, depending on various factors. There are different ways to understand how you can calculate its value. A domain calculator would come in extremely useful in such scenarios. It doesn’t take a lot of time to reach your estimate of the domain name. Here, in this article, we will attempt to see how we can estimate a domain’s price in addition to going through some of the factors that determine it. We will also look into the importance of this. Some of the best domain value calculators would do a great job.
Before diving into how you can estimate your domain value, let’s take a look at what domain valuation is and other pertaining factors. Did you know that there is an entire industry revolving around domain names? It is extremely profitable if you come across potentially useful names and buy them. When the demand is high, the domain name owner can sell it and make an astounding profit. However, if you want to know the value of the domain name you have, you will have to perform domain valuation, a process aimed at understanding the value.
Before moving on, for the beginners out there, this is a small introduction. A domain name is part of the site’s URL. This is used by visitors to access the website. Domain names are extremely useful since they are usually known words instead of random characters. Top-Level Domain or TLD and Second-Level Domain or SLD are the main components of a domain name. For instance, the SLD contains the name of the brand or the business while the TLD is usually a suffix. The most popular one is .com. However, there are plenty of different ones available, such as .edu, .net, .gov, .org, and so on.
Factors Having an Impact on the Value
Many factors impact the value of the domain name. While the domain calculator is only used to give an approximation, it does come in handy. Do note that it is not the actual value. The actual value can only be determined by what the users are ready to pay for it. However, this approximation should give you a better idea of its value.
TLD or the Top-Level Domain: This is an important factor. .com is one of the most popular ones since it is common. Naturally, its price tends to be high as well. One thing to note here is that new TLDs could also be valuable, especially if they are caught up in the trend.
Traffic: If a specific domain name is currently being used for a website, the traffic the site encounters is the main factor for calculating the domain’s worth. The reason for this is not very complex. It just means that the domain comes with an existing audience base. This could also help make SEO easier.
Spelling: Some may think that this is not important enough to be a factor. After all, who would be silly enough mis-spell their brand, business, or a relevant title! However, it seems as if many people do do that mistake. So, it is very important to note that there is no spelling mistake in the domain name as that can decrease the value of it. On the same note, if it is an attractive name, its price will increase dramatically.
Keywords: Having relevant keywords in your domain name is a critical aspect of valuation. The more high-quality keywords your domain has, the higher its value would be.
How to Determine Your Domain’s Value
Let’s get down to the domain calculator. How can you figure out the value of your domain?
The first thing you should do is to do your homework and find out what is the cost of similar domains. This will give you an idea of the baseline of your domain. You can also browse around and look at domain names within the same industry as yours and other names that directly complement yours. This would give you an excellent idea. There are also many websites out there that are devoted to publishing data about the sales of the domain names. These websites are authentic and the data here can give you a pretty good insight.
These websites also share several data about recent sales and the different content related to it. This would also give you a list of top keyword-based domains. If your domain name is something similar to this, you can be sure you own something very valuable indeed.
Moving on, the next thing you should do is to use a domain appraisal service. This would give you information about your domain, find its approximate value, and offer comparison as well. The functions are usually automatic. You would receive an estimate of your domain value based on several different factors. Some tools give a detailed answer, such as breaking down the factors and the weight each one carries. Based on past trends, the tool would also be able to tell you if the value of your domain name is likely to go up in the near future.
By now, you would have a pretty clear estimate of your domain value. A good thing to do now would be to find out how many people are interested in paying for your domain name. This would help reaffirm that the demand is high and the price estimated by the domain appraisal service is accurate. One sure-shot way to do this would be to put it up for sale. However, you don’t need to take any risks by offering a lower value. Some websites allow you to set a reserve value, protecting you from selling it for too little.
To wrap up, let’s just say that having a domain name is a great asset, especially one that is relevant to some industry or business. Having an approximate idea of its value can help you greatly. For this, a domain value calculator can be extremely useful.